- MANTRA (OM) token collapsed by 90% of its $6 billion market cap over the weekend.
- CEO John Patrick Mullin blames “reckless forced closures” by centralized exchanges, not a rugpull.
- Binance and Laser Digital have distanced themselves from the token’s collapse, while on-chain analysts noted suspicious transfers prior to the crash.
The cryptocurrency token MANTRA (OM) suffered a catastrophic 90% loss of its $6 billion market cap over the weekend, according to market data. John Patrick Mullin, CEO of the real-world asset (RWA) project, has denied allegations of a rugpull, instead blaming centralized exchanges for initiating "reckless forced closures" that triggered the collapse.
MANTRA, which had previously signed a billion-dollar deal with Dubai developers to tokenize real estate and data centers, saw its price drop dramatically during low-liquidity trading hours. This prompted X users to speculate about possible insider selling, with some claiming the project’s Telegram chat disappeared during the price crash.
Exchange Liquidations Blamed
Mullin refuted these allegations in a series of posts, stating that no insider selling occurred. He provided evidence that the Telegram chat remained online, explaining that a bot had temporarily shut it down after detecting spam. Mullin placed blame on unnamed exchanges, suggesting the responsible exchange likely doesn’t begin with a "C" or a "B."
During an appearance at RWA Summit, Mullin reportedly addressed the incident, stating that "Large investors using $OM as collateral were liquidated," with Alphanonce reporting that a "post mortem" analysis would follow soon.
Market Reactions and Suspicious Transfers
Both Binance and crypto investment firm Laser Digital have publicly distanced themselves from the token’s collapse. Meanwhile, blockchain analytics raised additional questions, with Lookonchain noting that approximately $12.6 million worth of OM tokens were transferred to a wallet linked to venture capitalist Shane Shin just five hours before the collapse – a sum now worth roughly $1.6 million.
Crypto investigator ZachXBT expressed concerns about one of MANTRA’s public addresses, while Wu Blockchain highlighted that MANTRA had previously made false claims regarding FTX investments, adding to the scrutiny surrounding the project’s credibility.
✅ Follow BITNEWSBOT on Telegram, Facebook, LinkedIn, X.com, and Google News for instant updates.
Previous Articles:
- XRP Price Prediction: What Can We Expect from Ripple in 2025?
- Bitcoin Plunges as Dalio Warns of Economic Crisis “Worse Than Recession”
- MicroStrategy Put Options Yield Lower Returns Despite Stock Decline
- Crypto Markets Surge: CoinDesk 20 Index Jumps 4.4% Led by SOL, BCH
- Strategy Buys 3,459 Bitcoin for $285.5M Despite Market Uncertainties
